I wrote a code to simulate a standard RBC model with labour market search. The model is similar to Andolfatto (1996, AER). The main difference is that I do not add the leisure into the utility function and also I do not take into account the intensive margin.
The code has been attached. Can anyone please have a look and tell me what might go wrong with the code? rbcsam1.mod (3.2 KB)
Dear Johannes, thank you for taking time reading my codes. I changed the timing as you suggested but it didn’t work. I have tried different timings for other equations and have tried the non-linear model as well. They either didn’t work. This makes me wonder if I should change the model.
Dear Johannes, I just want to say thank you for your help. It is indeed a timing problem. Apart from the point you made, I also messed up the timing in the budget constraint. Now the code is ok and I can proceed. Thank you.